January 2018

January 30, 2018

The Federal Housing Finance Agency has released its "FHFA Strategic Plan: Fiscal Years 2018-2022," which reflects the agency's priorities as regulator of the Federal Home Loan Banks and as regulator and conservator of Fannie Mae and Freddie Mac (the Enterprises). According to the FHFA, the strategic plan sets forth three goals for the agency: (1) ensure safe and sound regulated entities; (2) ensure liquidity, stability, and access in housing finance; and (3) manage the Enterprises' ongoing conservatorships.

January 25, 2018

The Consumer Financial Protection Bureau has issued a Request for Information regarding its use of civil investigative demands as the first step in Acting Director Mick Mulvaney's plan to gather evidence on how well the Bureau is doing its job. The RFI poses 11 specific questions that the notice says will help the CFPB assess its existing processes for originating, drafting, and enforcing CIDs. Comments on the RFI must be received by March 27, 2018.

The Dodd-Frank Act gives the Bureau the authority to issue CIDs to anyone--companies or individuals--who is believed to have information on a violation of any law under the Bureau's authority. The CFPB's use of that authority has been the subject of court challenges as companies have contested the breadth of the information demanded, the identification of the law that might have been violated, and the relevance of the information to that law.

January 24, 2018

A Consumer Financial Protection Bureau blog post describes Bureau resources to help consumers shop for auto loans, student loans, and home loans. According to the post, the Bureau's "Know Before You Owe" tools and information can help make the loan process easier to understand.

The author advises consumers to check their credit scores before seeking a loan and to shop around for the best loan offer. The post has sections on shopping for an auto loan, paying for college, and mortgages and home buying that describe and provide links to CFPB resources.

"The Consumer Bureau was created in response to the 2008 financial crisis and has put $12 billion back into the pockets of 29 million consumers and addressed over 1.2 million complaints about financial institutions since its inception," said Waters. "Under the leadership of Richard Cordray, the Consumer Bureau did an excellent job of protecting the interests of consumers over predatory financial institutions. But Mulvaney is now shamefully working to deconstruct the Consumer Bureau and remove protections for hardworking Americans."

January 18, 2018

The Consumer Financial Protection Bureau is planning a series of requests for information that are intended to provide evidence on how well the Bureau is doing its job. According to a CFPB press release, the RFIs will ask for comments on the CFPB's "enforcement, supervision, rulemaking, market monitoring, and education activities."

The first RFI will focus on civil investigative demands--demands for information from companies that the Bureau uses as part of investigations into specific industries, companies, and practices, as well as into how those practices affect consumers.

In response to the CFPB's announcement, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) issued a statement in which he commended CFPB Acting Director Mick Mulvaney "on his recent call for evidence of the CFPB's track record under its previous leadership." He went on to say that "the CFPB has an important mission, and it is capable of great good. But when it acts without accountability or transparency, it is also capable of great harm."

January 16, 2018

The House Financial Services Committee will hold a full committee markup on Jan. 17, 2018, and subsequent days if necessary, to consider 17 bills, including the Small Bank Holding Company Relief Act of 2018 (H.R. 4771) and the Volcker Rule Regulatory Harmonization Act (H.R. 4790). H.R. 4771 would direct the Federal Reserve to raise the threshold for its Small Bank Holding Company Policy Statement from $1 billion to $3 billion. According to a press release by Rep. Josh Gottheimer (D-NJ), one of the bill's sponsors, the bill is intended to help small banks around the country get access to the capital they need to serve their communities.

H.R. 4790 would amend Section 619 of the Dodd-Frank Act, commonly known as the Volcker Rule, to streamline the regulatory authority over the Rule by granting the Federal Reserve the exclusive rulemaking authority and providing the primary federal banking agency for a banking entity the sole examination and enforcement authority. The bill also exempts community banks from the Volcker Rule if they have $10 billion or less in total consolidated assets.

January 09, 2018

The Federal Reserve Board has released questions and answers related to its annual Comprehensive Capital Analysis and Review exercise. Fed staff provides answers to questions from firms related to CCAR and its Dodd-Frank Act stress tests on an ongoing basis to assist with the interpretation of reporting instructions and related regulations and supervisory guidance.

According to the Fed, these questions and answers are provided directly to all firms subject to CCAR and DFAST and published on the Fed's website to facilitate transparency and consistency of interpretation and application of related rules and guidance. The current document includes questions submitted on or after Aug. 1, 2017.

Senator Elizabeth Warren (D-Mass) has sent a letter to Office of Management and Budget Director Mick Mulvaney and Consumer Financial Protection Bureau Deputy Director Leandra English, both of whom claim the status of CFPB acting director, expressing concern about Mulvaney's decision to freeze the collection of consumer data by the Bureau, which he announced on Dec. 4, 2017, citing concerns by the CFPB's Inspector General regarding the Bureau's information security controls.

In her letter, Warren raised concerns about the impact of the data collection freeze on the Bureau's core functions and also expressed concern about Mulvaney's justification for shutting down data collection, highlighting what she believed is the discrepancy between the modest risks cited in recent reports by the Bureau's IG and the actions taken by Mulvaney in response. Warren asked for additional information on the data collection freeze and its impact on CFPB's operations, and she requested that her staff be briefed on the topic.

January 02, 2018

The Consumer Financial Protection Bureau is requesting to renew, without change, the Office of Management and Budget approval for an existing information collection entitled "Generic Information Collection Plan for Studies of Consumers using Controlled Trials in Field and Economic Laboratory Settings." According to the CFPB's notice, the Bureau is seeking to renew the OMB approval for a generic information collection plan to collect data from purposive samples through controlled trials in field and economic laboratory settings. The research will be used for developmental and informative purposes to increase the Bureau's understanding of consumer credit markets and household financial decision-making.

On Oct. 3, 2017, the Bureau issued a 60-day notice in 82 Federal Register 46042 requesting comments on the proposed renewal. Written comments on the current notice must be received by Jan. 29, 2018, and will be reviewed by the OMB as part of its review of this request.